Jackson Sheds Has Four Different Warehouse Configurations Under Study,ranging from Four

question 92

Essay

Jackson Sheds has four different warehouse configurations under study,ranging from four warehouses to seven warehouses (only integer values).Each warehouse has a capacity of 200 units and costs $200 to maintain over the course of a year.Demand can range from 1000 units per year up to 2000 units in increments of 250 units.If the system warehouse capacity is sufficient to handle the year's demand,then the per unit cost is $2 per unit,but if the warehouse capacity is insufficient,the per unit cost for each unit in excess of system capacity is $3 per unit.The likelihood for each possible demand is shown in the table.
Which warehouse configuration is BEST for Jackson Sheds?

---

Definitions:

Mud Wrestling

A sport or entertainment activity involving participants wrestling in mud.

Z Statistic

A measure that describes how many standard deviations an element is from the mean of its distribution, often used in significance testing.

Degrees Of Freedom

The number of values in a calculation that are free to vary, essential in assessing the precision of statistical estimates.

Chi-Square Test

A statistical test applied to sets of categorical data to evaluate how likely it is that any observed difference between the sets arose by chance.